SB323 Alabama 2018 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2018

Title

Education Trust Fund Rolling Reserve Act, Education Trust Fund Budget Stabilization Fund, authorize funds to be used for school security, Sec. 29-9-4 am'd.

Summary

SB 323 creates two new Education Trust Fund funds to manage stabilization and nonrecurring education needs, and sets rules for emergencies, school security, and maintenance funding for Alabama public schools and higher education.

What This Bill Does

The bill creates the Education Trust Fund Budget Stabilization Fund and the Education Trust Fund Advancement and Technology Fund. It outlines how excess Education Trust Fund revenue is allocated to these funds, and how money from them can be spent—emergency repairs after Governor-declared disasters, and improvements like school security and technology—with strict repayment rules and caps. It also requires that the Advancement and Technology Fund balance be at least $10 million before any spending, and directs how funds are divided between public schools and higher education. Oversight and certification duties fall to the Governor, Comptroller, and Legislative Fiscal Office.

Who It Affects

• Public schools and institutions of higher education in Alabama; they may receive emergency repair funding, security improvements, and technology funding, with repayment obligations if emergency funds are used.
• Governor, state Comptroller, and Legislative Fiscal Office (and related state agencies) who certify needs, approve distributions, and oversee fund transfers and compliance.

Key Provisions

• Create two new funds: Education Trust Fund Budget Stabilization Fund and Education Trust Fund Advancement and Technology Fund.
• Excess revenues are transferred to these funds: an initial transfer up to 2% of the prior year's Education Trust Fund appropriations to the Budget Stabilization Fund, then, in subsequent years, up to 1% annually until the Fund reaches 7.5% of the previous year's appropriations; remaining excess goes to the Advancement and Technology Fund for nonrecurring expenses (repairs, deferred maintenance, insuring facilities, transportation, school security, and education technology) and cannot be used to pledge debt service.
• Advancement and Technology Fund cannot be appropriated until its balance at the end of the prior year is at least $10 million; funding is not limited by the annual appropriation cap and is allocated via a supplemental appropriation bill.
• Annual distributions between public schools and higher education follow a percentage split certified by the Legislative Fiscal Office.
• Budget Stabilization Fund withdrawals: can be used to prevent proration or, with Governor certification, to fund emergency repairs after a Governor-declared disaster; withdrawals are capped at 10% of the current balance and must be repaid within two fiscal years (repaid first from insurance settlements) with 8% interest if not repaid; failure to repay can bar further emergency funding until repayment.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education